Fed’s Tarullo Bemused by Foreign Criticism of Bank Rules

Complaints from large international banks and top European officials about proposed Fed rules on foreign banks operating in the U.S.? Federal Reserve governor Daniel Tarullo is “bemused.”

Mr. Tarullo fired back at criticisms of a Fed proposal to subject the U.S. operations of foreign banks to many of the same capital and risk management rules U.S. banks have to operate under. Noting that other countries already have similar rules in place for U.S. banks, he said the Fed’s experience during the financial crisis — when foreign banks were heavy borrowers from the central bank’s discount window — required such a change.

“I’m a bit bemused by complaints that somehow we are doing something that is a break with what has been done before,” Mr. Tarullo said.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.